Essel Group Middle East (Essel ME), a wholly-owned subsidiary of business conglomerate Essel Group, has signed an agreement with Canadian firm Simba Energy Inc to pick 60 per cent stake in its African oil and gas exploration projects for an undisclosed amount.
Essel ME will invest in Simba's portfolio of existing African exploration projects on a farm-in basis, the company said.
Dubai-based Essel ME is involved in the business of mineral mining, oil explorations and acquisition of natural resource assets globally. The company is foraying into hydrocarbon sector and this agreement is a significant step towards this initiative.
"Having reviewed the available data on Simba's blocks along with the surrounding exploration and production success by other major groups, we see a highly undervalued opportunity with strong potential. We did not want to pass up on this opportunity in what is fast becoming a very competitive environment," said Gagan Goel, MD, Essel Group Middle East.
Recently Essel Group signed an agreement with the Rajasthan government to set up 5 GW of solar power capacity. The solar parks will be set up in Bikaner and Jaisalmer with an investment of Rs 4,000 crore in which both Essel and Rajasthan government will have 50 per cent stake each.
Simba Energy is a oil and gas exploration firm focused on the onshore frontier basins of Africa. Founded in 1990, its portfolio comprises onshore production sharing contracts (PSCs) in Chad, Kenya and Guinea.
